A Russian company with a controversial history of selling grain from occupied Ukrainian territories has recently exported over 20,000 tons of wheat to Egypt, according to documents obtained by the Organized Crime and Corruption Reporting Project (OCCRP). The shipment, which was originally destined for Syria, was rerouted and unloaded in the Egyptian port city of Alexandria last month, raising concerns over whether the grain originated from illegally seized Ukrainian farmlands. The transaction underscores the complexities of global wheat trade and the difficulties in tracking agricultural exports from conflict zones.

The shipment in question was exported by Pallada LLC, a Russian company previously accused of dealing in grain stolen from occupied Ukrainian territories. OCCRP documents indicate that Pallada had received wheat from the occupied Zaporizhzhia region during the two months preceding the cargo’s departure, though definitive proof linking this particular shipment to stolen Ukrainian grain remains elusive.

The cargo was transported aboard the vessel Mikhail Nenashev, which was initially set to deliver over 27,000 tons of wheat to Syria, as evidenced by a Russian sanitary certificate dated November 28. The ship first appeared on tracking systems the next day in the Black Sea, heading toward Istanbul. However, following the collapse of President Bashar al-Assad’s regime on December 8, the vessel changed course, lingering near Cyprus for nearly three weeks before eventually docking in Alexandria on December 30.

Egyptian shipping records confirm that the wheat was imported by Mostakbal Misr (translated as “Future of Egypt”), a military agency that has recently taken over the import of strategic commodities. Previously, Egypt’s General Authority for Supply Commodities managed the country’s wheat purchases, but Mostakbal Misr has now become the primary buyer.

Interestingly, a discrepancy emerged in the reported wheat volume. The Russian sanitary certificate listed the shipment at 27,000 tons, but Egyptian records noted only 24,290 tons. The cause of this 3,000-ton shortfall remains unclear. Nevertheless, based on the average global price of wheat in December, the delivered portion was valued at approximately $6.7 million.

Tracking the exact origin of the wheat aboard the Mikhail Nenashev has proven to be challenging. The November 28 sanitary certificate does not specify a departure port, and the vessel turned off its tracking system multiple times before reaching Egypt. Investigators from SeaKrime, a Ukrainian maritime monitoring group, claim the ship was loaded at the Avlita terminal in Sevastopol, Crimea-an occupied Ukrainian territory. While OCCRP was unable to independently verify this claim, photographic evidence places the vessel passing through the Bosphorus Strait in early December, aligning with the timeline of a Sevastopol departure.

Pallada LLC itself is a relatively new player in the grain trade, registered in August 2022. The company is 89% owned by Sergey Yurievich Kuznetsov, a Russian businessman with no known history in the agricultural sector before establishing Pallada. Documents reviewed by OCCRP indicate that Russian-backed authorities in occupied Ukraine granted Pallada permission to export thousands of tons of wheat, barley, and meslin from seized farmlands in the Kherson and Zaporizhzhia regions throughout 2023.

More recently, Pallada received three separate batches of wheat from occupied Zaporizhzhia districts, totaling 126 tons, on September 27, October 5, and October 23. While these amounts are relatively small compared to the shipment bound for Egypt, they add to growing concerns that Russia is systematically extracting and selling Ukrainian agricultural products.

The Mikhail Nenashev has been under scrutiny for years. In 2022, a leaked US State Department cable identified the vessel as one of three suspected of transporting stolen Ukrainian grain. Satellite imagery and tracking data have previously placed it at the Avlita terminal before departing for various eastern Mediterranean ports. The Ukrainian government has repeatedly called on Turkey and other nations to investigate and halt the ship’s activities, though little has been done to prevent its continued operations.

Ukraine has long warned countries against purchasing grain shipments suspected of originating from occupied territories. In May 2022, Egypt heeded Kyiv’s concerns and turned away a vessel believed to be carrying stolen Ukrainian grain. However, the recent shipment by Pallada LLC suggests that enforcement of such trade restrictions remains inconsistent.

Ukrainian officials have been vocal about their grievances regarding Russia’s control over agricultural exports from occupied areas. The Ukrainian Foreign Ministry has labeled Russia’s actions as a “triple crime,” accusing Moscow of bombing Syria, occupying parts of Ukraine, and profiting from stolen Ukrainian resources. Vladyslav Vlasiuk, an advisor to Ukraine’s president and commissioner for sanctions policy, pointed to the ship’s originally planned Syrian destination and inconsistencies in tracking data as clear indicators that Egypt should have scrutinized the shipment more carefully.

Egypt is one of the world’s largest wheat importers and has historically sourced its grain from both Russia and Ukraine. However, Ukraine’s production has significantly declined due to the ongoing conflict, and Russian naval blockades have further restricted its ability to export through the Black Sea. Meanwhile, Russia has sought to capitalize on its occupation of Ukrainian farmlands by exporting grain from seized territories.

Syria was previously a key market for such shipments due to its close ties with Moscow, but the recent political shift following Assad’s collapse has disrupted those trade patterns. Egypt, with its immense wheat demand, now finds itself in a controversial position as it continues to import from Russian suppliers like Pallada.

Determining the exact origins of grain shipments remains a challenge due to the way wheat is often bundled from multiple sources before export. Without technologies such as DNA testing, it is nearly impossible to trace individual shipments definitively. Recognizing this issue, the UK announced a “grain verification scheme” in January, using advanced scientific techniques to track agricultural origins more accurately. Such initiatives may help Ukraine curb the sale of its stolen grain in the future.

The case of the Mikhail Nenashev illustrates the murkiness of global grain trade amid geopolitical conflict. As Ukraine continues to lose access to its agricultural resources, Russia has found a way to monetize its occupation by selling wheat from seized lands. Egypt’s involvement in purchasing such grain, whether knowingly or unknowingly, raises ethical questions about international complicity in the exploitation of wartime resources.

Despite Ukraine’s efforts to alert countries about potential purchases of stolen grain, economic necessity often outweighs diplomatic concerns. Without stronger enforcement mechanisms and enhanced tracking technologies, the trade of potentially stolen Ukrainian wheat is likely to persist. The international community faces a difficult challenge: balancing economic needs with ethical responsibility in a highly volatile and strategically significant sector.

Please follow Blitz on Google News Channel